What you need to know about Sage BusinessWorks and the new form 1099-NEC requirements.
Why are there new requirements?
The IRS has made a significant change in the way non-employee compensation payments are reported on the 1099 form. Previously, these payments were reported on Form 1099-MISC, Box 7. The non-employee compensation field was removed from the 1099-MISC form so beginning with the 2020 tax year, these payments are to be reported on Form 1099-NEC, Box 1.
How has this been handled in Sage BusinessWorks?
Sage BusinessWorks 2021 has been updated to include support for the 1099-NEC form. Sage BusinessWorks 2021 is the only version that currently has support for the 1099-NEC and will need to be installed prior to printing the 2020 1099-NEC form.
Changes have been made to the 1099 worksheet, vendor maintenance, and global vendor change to support the 1099-NEC. The 1099-NEC will be used to report non-employee compensation (previously 1099-MISC box 7).
Note: Due to the creation of Form 1099-NEC, there will be a revised Form 1099-MISC. The box numbers of the 1099-MISC will be rearranged for reporting certain income.
The Sage Software development team is investigating a potential service pack to account for these changes in Sage BusinessWorks 2020.
For more information about the 2020 1099s visit the IRS website below:
If you need assistance upgrading your BusinessWorks system to version 2021, please contact DWD’s Sage BusinessWorks team at 800.232.8913 or firstname.lastname@example.org.